industrial orientation report -smeet jain

Industrial Orientation Report – Malaysia China Hongkong

INDUSTRIAL ORIENTATION REPORT –

Malaysia CHINA HONGKONG

POST GRADUATE PROGRAMME IN

MBA- FB&E

(2014-2016)

SUBMITTED BY:

Smeet Jain

144154

Table of Content

Institute of Management, Nirma University


Part Content Page No.Preface 4Acknowledgement 5Declaration 6

A Domestic Visit 7Domestic Industries Visited 8 1.1 Shetty Chemicals 8 1.2 Sunex Tubes 9 1.3 Sandeep Tubes 9 1.4 Amul Satellite Station 10 1.5 Mapro Satara Plant 11 1.5 Himcast 12 1.6 Sai Kartik Kaju Packing 13 1.7 Casino Pride Goa 14

B International Visit 16Introduction to China 17 2.1 Background of China 17 2.2 Facts about China 18 2.3 Industries in China 18 2.4 International Trade in China 19 2.5 Politics & Government 19 2.6 Observations and Learnings about China in General 20Industries Visited in China 21 3.1 Maglev Train 22 3.2 Maglev Museum 24 3.3 Nanjing Street 25 3.4 Wal-Mart Shanghai 26 3.5 IKEA Shanghai 27 3.6 Silk Factory 28 3.7 Huangpu River Cruise 28 3.8 Volkswagen Shanghai 29 3.9 Bao Steel Plant 30 3.10 Lenovo Shanghai Factory 32 3.11 Sunqiao Modern Agriculture Development Zone 34 3.12 Shanghai World Financial Centre 35 3.13 Family Business Network 36 3.14 Coca-Cola Bottling Plant Shanghai 37 3.15 East China Normal University 38 3.16 Shanghai ShenAn Textile 39 3.17 Yiwu Commodity Market 40 3.18 Keqiao Textile Market 43 3.19 Meijiawu Tea Village 44 3.20 Shenzhen RSB Full Colour Display-Tech Co. Ltd. 45 3.21 Louhu Market 46 3.22 Windows of the World 47 3.23 Louvre Furniture Mall 48 3.24 Canton Fair 49Introduction to Hongkong 51



4.1 Introduction 51 4.2 Economy 51 4.3 Industry overview 52Industries Visited in Hongkong 53 5.1 HKTDC (Hongkong Trade Development Council) 53 5.2 Ocean Park 55 5.3 Victoria Peak 57 5.4 Star Virgo Cruise 58Learnings for Business Plan 60 6.1 Visit to Lianyoubang Machinery, Foshan 60 6.2 Canton Fair 63References 64

PREFACE



The purpose of the Industrial Orientation is to acclimatize the students with the practical knowledge of company as a whole and the industry in which the company is. Industrial Orientation will help the management students in getting equipped with the exposure required for making business decisions.

Industrial Orientation provides the framework and avenues for identifying and getting a close feel of the value chain activities and strengthening the business networks. The main objective of this activity is to give international exposure to the students, which will enable them to learn about the target countries and understand the business culture. It not only provides the opportunity for the country study alone, but also tap business opportunities simultaneously in the country visited.

The industrial Orientation was the valuable experience in terms of exposure & learning and I believe that in future, I will get desired results.

ACKNOWLEDGEMENT



I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project.

I express my sincere gratitude to Mr. Sanjay Jain and Ms. Reena Shah, for providing me assistance and all the help during the international visit. I am thankful to them for their support, cooperation, motivation and some of the valuable industry insights.

I would like to thank Mr. Tejas Ambani, the trip coordinator from Yatra tours and travels for organizing such a valuable trip for providing valuable insights about Hongkong and China respectively.

Lastly, I would like to thank the lord and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work and also my personal development.



PART A:

MALAYSIA VISIT

Chapter 1: Malaysia Industries Visited



Day 1: September 24th, Pune India

1.1 Shetty Chemicals

Shetty Chemical & Engg works Pvt Ltd is engaged in the business of manufacturing and selling calcined and fused Alumina products like Refractories. They have gained almost 50 yrs experience in manufacturing this product of best Quality. They have a well-developed Infrastructure and a skilful team for meeting the clients need.

SCEW is One of the biggest Manufacturer and exporter of a comprehensive range of refractory castables, general refractories, cement refractory castables. This Division Focuses on providing a wide range of refractory products to meet the needs of Various global factories like furnace refractories, petrochemical industry, fertilizer industry, copper industry, glass foundries, Power plants, Coal Mines, Coke

Oven Plants, Ceramic Industries, Oil Mills & Refineries, Saw Mills, Miscellaneous Furnaces, Ships & Marine Installations and many other areas.

1.1.1 Learnings and Observations

Established in 1952 Manufactures Refractory Cement (High Temperature Resistant Cement) Raw Materials: Bauxite, Chrome, Silicate, Cynate, Water, Grog Temperature Resistance range of Cement: 1250 C to 1850 C Other Product: Lubricant used in Drawing Bauxite is Obtained from Northern Gujarat It contains high amount of Alumina which acts as a binder Monopoly Product: Thermotex which withstands 1850 C One Boiler (approx. 100 sqft area) requires 2 to 3 drums of Thermotex 1 Drum has 40 kg Capacity Thermotex is in form of paste having particles not more than 2-3 mm Capacity: Thermotex – 15 ton/day, Castables – 27 ton/day, Lubricant – 1.5 ton/day Price of Thermotex: 23,000 to 25,000 Rs/ton Manpower: 13 Workers, 1 manager, 1 supervisor Refractory Cement has 4 Grades: Siscast CSD, Siscast super, Siscast super special

and thermopaste chromax Application of Refractory Cement: Sugar Industries and Boilers Application of Lubricant: Wire Drawing Company has total 4 units: 3 in saraswadi and 1 in jesuri Turnover: 4 to 5 lakh Rs/day

1.2 Sunex Tubes



Established in the year 2003, Sunex tubes is in the field of Fabrication of MS Products and Sheet Metal Processing. It is a family owned company located in Pune.

Products and Services offered are

Industrial Fabrication Services Material Handling Trolleys Storage Systems Coveyors Canopy Customized Trolleys


Established in 2003 Company is into Fabrication of MS products & Sheet metal processing It manufactures trolleys, carrying Automobile parts Durability of trolleys is 4 years Polypropylene is used for holding the automobile parts in trolleys Polypropylene is procured in sheet form having 8ftx4ft dimensions Machines Used: CNC cutting, Arc Welding, Lathe, Spot Welding, Shearing Machine,

Press break bending machine, Milter saw etc. Majority of the orders from Automobile Sector Specifications of the trolleys are given by the manufacturer Capacity: 40 to 45 Ton/day Annual Capacity : 15000-20000 Trolleys Weight of 1 trolley: Approx. 80 kg Allowable wastage for Sheet metal processing is 5% Laser Cutting is Outsourced

1.3 Sandeep Tubes

Incepted in the year 1992, Sandeep Tube Cleaning Equipment, is a H.U.F firm engaged in manufacturing, exporting and supplying of a wide array of tube cleaning equipment and machined components that includes cleaning brushes, flexible shafts, universal joints, directly coupled drives, inner casing sockets, wire brushes, double spiral brushes, single spiral wire brushes, expanding brushes, circular wire brushes, circular wire wheels, cup shaped wire brush, hand piece assembly, etc. to meet the growing requirement of sugar industry.

Under the able guidance of their mentor, Mr. Sushant Kaisare, they have carved a niche in the competitive industry and become a single window solution of sugar mills.



The company is a family owned business in which all six brothers are partner and actively participate in the day to day functioning of the business. Backed by sophisticated machines, they have been able to increase their production competence. Their ability to meet the ever-increasing demands of the clients has enabled their company to achieve a prestigious status of export house. They have two offices in Pune, from where they successfully conduct the business activities.


Established in 1992 Specially Designed machine imported from Germany to manufacture Products Products are used for mechanical cleaning of boilers Flexible shaft machines Carbon wires are used for descaling the boiler tubes Dimensions of the Flexible Shaft:

o Min 25 mm ID , Max 200 mm IDo Length: 25- 30 m long

Production capacity of shaft: 300 m/day Application: Sugar Industries where chemical treatment is not feasible Water is used as a lubricant Manpower: 25 Employees Turnover: 4-5 Crores

Day 2: September 25th, Pune India

1.4 Amul Satellite Station

Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual turnover (2013-14) US$ 3.0 billion. Its daily milk

procurement is approx. 13.18 million lit per day from 17,025 village milk cooperative societies, 17 member unions covering 31 districts, and 3.23 million milk producer members.

It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly known as 'AMUL', which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. Its

success has not only been emulated in India but serves as a model for rest of the World. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 53 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza cheese, Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc.




Amul Satellite Station to cater the needs of Maharashtra On 26th Jan 2004 all the process were converted into automatic from manual Milk comes to Pune Amul Satellite Station from Anand Storage Capacity: 1,50,000 Litres/day Milk is supplied to Aurangabad and Pune from the Pune Amul Satellite Station Curd is supplied to Aurangabad, Pune, Goa and Nashik from Pune Amul Satellite

Station Milk Variants: Taaza Gold and Slim & Trim Curd is offered in pouch and cup Buttermilk has seasonal demand in Maharashtra unlike uniform demand in Gujarat Procurement is done by Milk procurement team They have started to develop co-operative structure Animal Husbandry and Training and development of people GCMMF provides order to this branch No compromise in Quality Manpower: 24 Technical Labour, 21 Non Tech Labour and 55 Contract Labourers Storage of Milk takes place at 2 to 3 C Departments: Quality Assurance, Production Milk Processing, Production Curd &

Buttermilk, Packing, Utility & engineering, Accounts, HR & admin, Store and Purchase

UV light used to kill mosquitoes Provides on Job Training Good Housekeeping Food Quality Training

1.5 Mapro Satara Plant

Located around the idyllic hill-town of Panchgani in Western India, Mapro Foods manufactures Fruit Jams; Fruit beverage concentrates – Crushes and Squashes; and Fruit Bars. With an annual processing capacity of around 30 thousand MT, Mapro is a market

leader in Western India. The company has grown organically over the last five decades with sustained profitability. Known for its quality and innovation, Mapro has been built on its founder’s philosophy of developing products that are wholesome, nutritious, value-for-money, and imaginative.

Mapro’s portfolio of products provides a high quotient of natural fruit in the form of Jams, Fruit bars and chews, Syrups, Crushes, Squashes, and Dessert Toppings. Its range of

premium products such as Thandai crush and Kesar syrup are made from the finest selection of exotic ingredients. Mapro’s products are known for their wholesome taste and quality, as also their natural goodness and nutritive value. Mapro was the pioneer of fruit-based confectionery in India, with its first jelly sweets being made from fruit juices and liquid glucose. The ‘Falero’ pulpy fruit chews, which are better known as ‘pates de Fruit’ in the rest of the world – are excellent exemplars of Mapro’s very own Innovation Labs. Falero come in unique indigenous flavours that are suited to the Indian palate, like Kacchi Kairi (Raw Mango), Alphonso Mango and Strawberry.




Established in 1959 25 Acres of Land 4 Plants – Mahabaleshwar, Panchgini , Baramati and Satara Strawberry Jam was the first product followed by Gulab Sharbat Fruit pulp is exported to other countries Strawberry and Mango are grown over there Capacity of Plant: 30,000 Litre Products: Jams, Falero and Syrup

Day 3: September 27th, Goa India

1.6 Himcast

Himgiri Castings Private Limited was founded in the year 1993 in Goa, India. Himgiri is currently producing about 20000 Metric Tons Castings per annum. The product mix is about 70% Ductile Iron & 30% Grey Iron. The company is exporting about 75% of its production to countries like USA, Australia, New Zealand, France, Germany, Spain, Italy, Belgium etc.

HIMGIRI CASTINGS has two Manufacturing locations: GOA UNIT and HALOL UNIT (GUJARAT). With complete integration of latest technologies and quality systems, they at Himcast strive to attain the highest level of customer satisfaction. To become customers' first choice perpetually, Himcast team is aligned to provide best solutions to its valued customers in terms of quality, cost, development and delivery. They have adopted customer centric strategies and believe that this would ensure the satisfaction of all the Customers, Employees, etc. Their customers include several prominent companies in India and abroad. We have extensive experience in manufacturing and supplying components to various standards and specifications.

They can produce castings in the weight range of 5kg – 250kg single part piece. Production facility include Induction & Gas Fired Cupola Furnace, High Pressure line, Arpa1300, Arpa900, Arpa450,Core shooters, Sand Plant, Sand Cooler, Knock out, Heat Treatment, Shot Blasting, Powder Coating, Chemical Lab, Physical Lab and Machine shop with CNC, VMC, HMC, VTL etc.


Established 1995 20% of the Production is consumed locally whereas rest 80% is Exported Raw Material: Grey Cast Iron, Spheroidical Cast Iron, Scrap, Charcoal and Pig Iron Capacity: 700 ton/month Export Region: America, Australia, Japan Manpower: 400 Workers



Plant operates in 3 shifts with 100-150 workers in each shift

Process

1. Knockout2. Decoring3. Shot Blasting4. Finishing5. Grinding6. Testing7. Drilling8. Painting9. Dispatch

Day 4: September 29th, Goa India

1.7 Sai Kartik Kaju Packing

The cashew tree is a tropical evergreen that produces the cashew nut and the cashew apple. The cashew nut is served as a snack or used in recipes, like other nuts, although it is actually

a seed. The cashew apple is a fruit, whose pulp can be processed into a sweet, astringent fruit drink or distilled into liqueur. The shell of the cashew nut yields derivatives that can be used in many applications from lubricants to paints, and other parts of the tree have traditionally been used for snake-bites and other folk remedies.

Originally native to north-eastern Brazil, the tree is now widely grown in tropical regions, Vietnam and Nigeria being major producers, in addition to India,

the Ivory Coast, and Indonesia. The cashew apple, also called cashew fruit, is the fleshy part of the cashew fruit that is attached to the cashew nut. The top end of the cashew apple is attached to the stem that comes off the tree. The bottom end of the cashew apple attaches to the cashew nut, which is encased in a shell. In botanical terms, the cashew apple is an accessory fruit that grows on the cashew seed (which is the nut).

The cashew apple is a soft fruit, rich in nutrients, and contains five times more vitamin C than an orange. It is eaten fresh, cooked in curries, or fermented into vinegar, as well as an alcoholic drink. It is also used to make preserves, chutneys, and jams in some countries such as India and Brazil. In many countries, particularly in South America, the cashew apple is used to flavour drinks, both alcoholic and non-alcoholic


Mango & kaju are brothers-sisters

Kaju tree requires low plantation



It is the only fruit which has seed outside fruit.

Only one kaju in one fruit

Weight of 700 Kaju is 1 kg

India has only 30% kaju with Goa having only 2% kaju

Goa kaju just has status & is sold only because people believe goa kaju brand and are sweeter in test

Kaju Skin has acidic oil

Shell has Non edible oil which is used in marine paints

Shell protects kaju while boiling at 100 degree.

Kaju fenni is a by-product which helps in reducing the price of original 'Kaju' product.

1 kg kaju consumption will increase your weight by half kg.

Only 10 kaju advisable in day - 5 morning, 5 evening

Kaju has more calories than ghee & cheese

So, cashew nut is body builder

Kaju is more preferred by soldiers as it can easily replace the food (being light in weight & high in calories)

1.8 Casino Pride Goa

Casino Pride Goa is a best premium floating casino in Goa, perhaps one of the casinos in India that offers the best gaming in India. Casino Pride built upon the vessel MV the Pride of Goa and berthed on the River Mandovi, is one of Goa's latest and most luxurious offshore casinos.


Owner: Mr. Nitin

No of Casinos owned by Pride group: 5

o Cruise based Casinos: 2

o Land based Casinos: 3

Common floor: Normal gaming zone, Roulette, card table, poker room

Second floor: VIP table



Facilities: Restaurant, kids room, Dance, Bars

Starting Date: Aug 2008 (Casino Pride 2)

No of Customer Daily: 700-800 Approx.

Timings: 24×7 working

Single entry for both casino

Morning time only running table are continued, Rest are balanced for accounting

Shifts: Gaming 4 Shifts, Food & beverage 3 shifts

Approx. 80-90 staff each shift

Games: Roulette, mini backard, casino war, black jack, 3 card poker, 5 card poker, mini flush, slot machine, alpha roulette (machine roulette), poker, teen Patti.

Each table: Dealer, Watch guard, Inspector

o Card game:3 people

o Roulette game: 2 people.

Training on the job,

Foreign currencies are accepted till $ 1000.

o Licence fees:

o Land - 25 lakh

o Boat - 1.25 crore

o Licence issue is at discretion of govt.

o Licences can’t be sold to other companies unless the whole company is taken over



PART B:

CHINA VISIT



Chapter 2: Introduction to China

2.1 Background of China

The People's Republic of China (PRC), commonly known as China, is the most populous state in the world with over 1.3 billion people. Located in East Asia, China is governed by the Communist Party of China (CPC) under a single-party system. The PRC exercises jurisdiction over 22 provinces, five autonomous regions, four directly administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly autonomous special administrative regions (SARs) - Hong Kong and Macau. Its capital city is Beijing.

At about 9.6 million square kilometres (3.7 million square miles), the PRC is the world's third- or fourth-largest country by total area and the second largest by land area. Mainland China's eastern seaboard is low-lying and has a 14,500-kilometre (9,000 mi) long coastline bounded on the southeast by the South China Sea and on the east by the East China Sea beyond which lies Taiwan, Korea, and Japan.



The ancient Chinese civilization—one of the world's earliest—flourished in the fertile basin of the Yellow River which flows through the North China Plain. For more than 6,000 years, China's political system was based on hereditary monarchies (also known as dynasties). The last dynasty, the Qing, ended in 1911 with the founding of the Republic of China (ROC) by the Kuomintang (KMT), the Chinese Nationalist Party. The first half of the 20th century saw China plunged into a period of disunity and civil wars that divided the country into two main political camps – the Kuomintang and the communists. In 1949, the communists won the civil war and established the People's Republic of China in mainland China. The KMT-led Republic of China relocated their capital to Taipei on Taiwan, its jurisdiction is now limited to Taiwan, Kinmen, Matsu and several outlying islands. Since then, the People's Republic of China (PRC) has been involved in political disputes with the Republic of China over issues of sovereignty and the political status of Taiwan.

China had the largest and most complex economy in the world for most of the past two thousand years, during which it as seen cycles of prosperity and decline. Since the introduction of economic reforms in 1978, China has become one of the world's fastest-growing major economies. As of 2013, it is the world's second-largest economy by both nominal total GDP and purchasing power parity (PPP), and is also the world's largest exporter and importer of goods. China is a recognized nuclear weapons state and has the world's largest standing army, with the second-largest defence budget.

2.2 Facts about China

The third most visited country in the world for tourism, despite its separation from most high-disposable-income countries.

The world’s largest population and third largest area. One of the longest national histories in the world: 3,000 years of documented history. A great array of historical relics including: the world’s longest wall, the Great Wall of

China, the world’s largest collection of 2,000-year-old life-size figurines, the Terracotta Army, and the world’s largest ancient palace, the Forbidden City

The world’s fastest growing economy for the last 30 years (10% or more per year). Fastest urbanization: 300 million people have moved from rural areas to cities in the

last 30 years, and the same is predicted for the next 30 years.. Most construction: Half of the world’s concrete and a third of the world’s steel is used

annually in China.

2.3 Industries in China

China is known to the world as an economic superpower. Most of the world’s trade and economic activities are highly dependent on the industries within China and the products that come out of them. The business that China brings to countries all over the world is only a testament to its strength and resilience as an industrial country after having gone through several economic and industrial reforms to stabilize its nation. The reforms took years and years to establish and secure, but its results are nothing short of remarkable. What with China being the leading provider of some of the world’s most demanded resources such as steel, coal, etc., it is only fitting that its major industries be looked at more closely in order to have an initial image of what China has been doing right with regards to its industries and how they develop such a strong economy.


http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures

http://en.wikipedia.org/wiki/List_of_countries_by_number_of_active_troops

http://en.wikipedia.org/wiki/List_of_states_with_nuclear_weapons

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate

http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate

http://en.wikipedia.org/wiki/Chinese_economic_reform

http://en.wikipedia.org/wiki/Prosperity


Following are the major industries in China

1. Power Industry2. Manufacturing and Automobiles3. Energy Industry4. Steel Industry

2.4 International Trade in China

The socialist market economy of China is the world's second largest economy by nominal GDP and by purchasing power parity after the United States. It is the world's fastest-growing major economy, with growth rates averaging 10% over the past 30 years.

China is a global hub for manufacturing, and is both largest manufacturing economy in the world and the largest exporter of goods. China is also the world’s fastest growing consumer market and second largest importer of goods. China plays a vital role in international trade, and has increasingly engaged in trade organizations and treaties in recent years. China became a member of the World Trade Organization in 2001, and concluded a trade agreement with the ASEAN nations in 2010. China also has free trade agreements with several nations, including Switzerland and Pakistan

China’s international trade has experienced rapid expansion together with its dramatic economic growth which has made the country target the world as its market. The stable political system, vast natural resources and abundant skilled labour in China have made it a modern global factory. Discussions of the role that international trade plays in promoting economic growth and productivity in particular, have been ongoing since several decades ago. Due to liberalization and globalization, a country's economy has become much more closely associated with external factors such as openness.

2.5 Politics & Government

The People's Republic of China is one of the world's few remaining socialist states openly endorsing communism. The Chinese government has been variously described as communist and socialist, but also as authoritarian and corporatist with heavy restrictions in many areas, most notably against free access to the Internet, freedom of the press, freedom of assembly, the right to have children, free formation of social organizations and freedom of religion. Its current political, ideological and economic system has been termed by its leaders as the "people's democratic dictatorship", "socialism with Chinese characteristics" and the "socialist market economy" respectively.

The country is ruled by the Communist Party of China (CPC), whose power is enshrined in China's constitution. The Chinese electoral system is hierarchical, whereby local People's Congresses are directly elected, and all higher levels of People's Congresses up to the National People's Congress (NPC) are indirectly elected by the People's Congress of the level immediately below. The political system is decentralized, and provincial and sub-provincial leaders have a significant amount of autonomy. There are other political parties in China, referred to in China as democratic parties, which participate in the National People's Congress and the Chinese People's Political Consultative Conference (CPPCC).


http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Switzerland

http://en.wikipedia.org/wiki/ASEAN

http://en.wikipedia.org/wiki/World_Trade_Organization

http://en.wikipedia.org/wiki/Import

http://en.wikipedia.org/wiki/Consumer_market

http://en.wikipedia.org/wiki/Consumer_market

http://en.wikipedia.org/wiki/Export

http://en.wikipedia.org/wiki/Historical_GDP_of_the_People's_Republic_of_China

http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)

http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate_(latest_year)

http://en.wikipedia.org/wiki/Economy_of_the_United_States

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)




http://en.wikipedia.org/wiki/China

http://en.wikipedia.org/wiki/Socialist_market_economy


The President of China is the titular head of state, serving as the ceremonial figurehead under National People's Congress. The Premier of China is the head of government, presiding over the State Council composed of four vice premiers and the heads of ministries and commissions. The incumbent President is Xi Jinping, who is also the General Secretary of the Communist Party of China and the Chairman of the Central Military Commission, making him China's paramount leader. The incumbent Premier is Li Keqiang, who is also a senior member of the CPC Politburo Standing Committee, China's de facto top decision-making body.

There have been some moves toward political liberalization, in that open contested elections are now held at the village and town levels. However, the Party retains effective control over government appointments: in the absence of meaningful opposition, the CPC wins by default most of the time. Political concerns in China include the growing gap between rich and poor and government corruption. Nonetheless, the level of public support for the government and its management of the nation are high, with 80–95% of Chinese citizens expressing satisfaction with the central government, according to a 2011 survey.

2.6 Observations and Learnings about China in General

Economy – Capitalist More than 95 % of Companies are Private owned or Corporate Feudalist Country Secretary General of Chinese Communist party and General Commander of Army –

Mr. Xi Jinping Politically it is Dictatorship (Only one voice) No debate in making decisions One birth policy to curb the population 1.5 billion – population of China In 1991 Socialism to Capitalism Before 1991, everything was state owned Rent – 80 cents per month before 1991 Every inch of land is state owned Land is given on lease

o Living : 70 year leaseo Factory : 40 year leaseo Shop : 20 year lease

Average salary of blue collar worker in Shanghai is 600 – 1000 USD including bonus Working System: 40 hours a week, 8 hours a day, 8x5 system Extra Wages paid for doing work on

o Extra time : 1.5 timeso Weekend : 2 timeso Holiday : 3 times

Average Salary of White collar worker in metro cities is 1500-2000 USD Smaller cities average salary is 20% lower Gasoline and diesel are almost at same rate Power Cost

o Residential : Day Rs 6/KW , Night Rs 3.5/KWo Industry and Agriculture : Rs 5.5/KWo Commercial: Rs 12/KW



Major Reasons for Low Cost Manufacturingo Productivityo Proper Planningo Proximity to Supplieso Land at Cheaper rate from Governmento Slight variations in specifications within the tolerance limit

Religion: Taoismo Taoism: Co-operation between human being and

mother natureo Universe is made up of Yin and Yango Yin is Black fish and Yang is white fisho Balance of Human Bodyo 3- 5 million Chinese follow Taoism

Before 1949, people followed Buddhism No specific religion in China Muslims and Christians are less than 1% Food they eat: Pork, Chicken, Lamb, Beef, Sea Food



Chapter 3: Industries Visited in China

Day 1: October 6th, Shanghai China

3.1 Maglev Train

The Shanghai Maglev Train or Shanghai Transrapid is a magnetic levitation train, or maglev line that operates in Shanghai, China. It is the first commercially operated high-speed magnetic levitation line in the world and only the third Maglev line to be operated. The train line was designed to connect Shanghai Pudong International Airport and the outskirts of central Pudong where passengers could interchange to the Shanghai Metro to continue their trip to the city center.

Construction of the line began in March 1, 2001, and public commercial service commenced on 1 January 2004. The top operational commercial speed of this train is 431 km/h (268 mph), making it the world's fastest train in regular commercial service since its opening in April 2004. During a non-commercial test run on 12 November 2003, a maglev train achieved a Chinese record speed of 501 km/h (311 mph).

It cost $1.2 billion to build. The train set was built by a joint venture of Siemens and ThyssenKrupp in Kassel. The track (guideway) was built by local Chinese companies who, as a result of the alluvial soil conditions of the Pudong area, had to deviate from the original track design of one supporting column every 50 meters to one column every 25 meters, to ensure that the guideway meets the stability and precision criteria. Several thousand concrete piles were driven to depths up to 70 meters to attain stability for the support column foundations. A mile-long, climate controlled facility was built alongside the line's right of way to manufacture the guideways.

The electrification of the train was developed by Vahle, Inc. Two commercial maglev systems predated the Shanghai system: the Birmingham Maglev in the United Kingdom and the Berlin M-Bahn. Both were low-speed operations and closed before the opening of the Shanghai Maglev Train.

The line is not a part of the Shanghai Metro network, which operates its own service to Pudong Airport from central Shanghai and from Longyang Road Station.



3.1.1 Speed Profile

3.1.2 Learnings

Maglev trains use magnets to levitate and propel the trains forward. The propulsion system consists of aluminum three-phase cable windings in the stator

packs that are on the guideway. When a current is supplied to the windings, it creates a traveling alternating current

that propels the train forward by pushing and pulling. When the alternating current is reversed, the train brakes. Different speeds are achieved by varying the intensity of the current. Only the section of track where the train is traveling is electrified. Since there is no friction these trains can reach high speeds. It is a safe and efficient way to travel.



Governments have mixed feelings about the technology. Some countries, like China, have embraced it and others like Germany have balked at the expense.

3.2 Maglev Museum

Shanghai maglev museum is located at the first floor of Maglev Longyang Rd station, 1250 square meters, which containing most of the history and technology of maglev train. The museum is composed of “Birth of Maglev”, “Maglev Shanghai Line”, “Maglev Technology”, “Maglev Superiorities” and “Prospects for Maglev”, totally five sections.

3.2.1 Learnings

Electromagnetic levitation: Controllable electromagnetic field is generated by exciting the on-board levitation magnets and the magnets and stator packs of long stator linear motor along the guideway attract each other, thus pulling the train upward and a stable levitation gap being guaranteed by controlling the levitation excitation current. Levitation gap between magnets and guideway is normally controlled to the range between 8 and 12mm.High-speed maglev system consists of four major components, i.e. guideway, vehicle, power supply and operation control system.

Guideway: the guideway guides the direction of the train’s movement and bears the load of the train and transmits it to the sub grade. The superstructure of the guideway comprises precisely welded steel or reinforced concrete guideway beams for connecting long stators and substructure constituted by the reinforced concrete piers and foundations.

Vehicle: vehicle is the most important part of the high speed maglev system, comprising levitation chassis and the magnets mounted on the chassis, secondary suspension system and vehicle section. Besides it includes such electrical appliances as on-board batteries, emergency braking system, levitation control system.



Power supply: The power supply system includes substations, trackside feeder cables, switch stations and other power supply equipment. Power supply system feeds the train with the power required for the train operation by energizing the long stator windings on the guideway. First, high voltage alternating current is taken from the 110KV public power grid, stepped down to 20KV and 1.5KV via step-down transformer, then converted into direct current via rectifier, then converted back to variable frequency a c current between 0 and 300Hz via rectifier. After step-up, the current will be fed to longstator winding on the guideway via guideway cables and switch stations, generating propulsion force between the stator and on-board magnets. The rectification equipment, conversion equipment and motor stators etc. of the maglev system are all installed on the ground. No strict requirements for the volume, weight, and anti-vibration of the equipment are available.

Operation control system: It is the fundamental guarantee for the normal operation of the entire maglev system. It includes all the equipment to be used in security guarantee control, execution and plan and also includes the equipment to be used in communication among the equipment. Operation control system consists of operation control center, communication system, decentralized control system and on-board control system.

3.3 Nanjing Street

Nanjing Road is the main shopping street of Shanghai, China, and is one of the world's busiest shopping streets. Nanjing Road is the world's longest shopping district; around 5.5km long, and attracts over 1 million visitors daily.

East Nanjing Road is a dedicated commercial zone. At its eastern end is the central section of the Bund, featuring the Peace Hotel. Immediately west of the Bund precinct was traditionally the hub of European-style restaurants and cafes, although in recent years these have become less of a feature as the demographics of visitors to Nanjing Road have shifted from affluent local residents to visitors from around the country. Close by is the Central Market, a century-old outdoor market today specialising in electronic components and digital media. Further west is the Nanjing Road pedestrian mall. Located here are most of Shanghai's oldest and largest department stores, as well as a variety of domestic retail outlets, and some traditional eateries with a long history.

East Nanjing Road ends at People's Park, formerly the Shanghai Race Course. Opposite the park are some of Shanghai's prestigious historic hotels, including Park Hotel. West Nanjing Road begins here, and features a number of upmarket malls, office buildings, the Shanghai Exhibition Centre, and shops. This area also previously featured a number of large mansions and estates, most of which are today either demolished or used by the government. West Nanjing Road, near Jing'an Temple, has witnessed constant development over the past ten


http://en.wikipedia.org/wiki/Jing'an_Temple

http://en.wikipedia.org/wiki/Shanghai_Exhibition_Centre

http://en.wikipedia.org/wiki/Shanghai_Exhibition_Centre

http://en.wikipedia.org/wiki/Park_Hotel_Shanghai

http://en.wikipedia.org/wiki/Peace_Hotel

http://en.wikipedia.org/wiki/Shanghai


years. This area is now host to several five star hotels, upscale shopping centres, restaurants and prime office buildings.

China's premier shopping street, 3.4-mile-long Nanjing Road, starts at the Bund in the east and ends in the west at the junction of Jing'an Temple and Yan'an West Street. Today Nanjing Road is a must-see metropolitan destination attracting thousands of fashion-seeking shoppers from all over the world. After the Opium War (1839-1842), Shanghai became a treaty port. Nanjing Road was first the British Concession, then the International Settlement. Importing large quantities of foreign goods, it became the earliest shopping street in Shanghai

Over time, Nanjing Road has been restructured, undergoing significant change. For shopping convenience, its eastern end has an all-weather pedestrian arcade. Big traditional stores no longer dominate the market since modern shopping malls, specialty stores, theaters, and international hotels have mushroomed on both sides of the street. Today over 600 businesses on Nanjing road offer countless famous brands, superior quality, and new fashions. KFC, McDonald's, Pizza Hut, and other world-famous food vendors line both sides of the street. Upscale stores include Tiffany, Mont Blanc, and Dunhill. In addition, approximately a hundred traditional stores and specialty shops still provide choice silk goods, jade, embroidery, wool, and clocks.

Open-air bars, abstract sculptures, and lingering sounds from street musicians enhance evening strolls. A trackless sightseeing train provides a comfortable tour of the night-transformed pedestrian street. Flashing neon signs illuminate the magnificent buildings and spangle the night skyline of this lively city. Nanjing Road is the world's longest shopping district; around 6 km long, and attracts over 1 million visitors daily.

3.3.1 Observations

You have not ever been to Shanghai unless you go to the Nanjing Road China's premier shopping street - extends westwards from the Bund to the junction of

Jing'an Temple and the West Yan'an Road First choice for many fashion-seeking shoppers Large shopping malls, time-honoured stores, famous stores and specialty shops cluster

along both sides of the road You can find whatever you want - commodities, home appliances, communication

equipment, photographic equipment, fitness equipment, clothing, shoes, fabrics, cosmetics, jewelleries, watches, glasses, books, food, medicine and children's needs.

3.4-mile-long road has two sections of East Nanjing Road and West Nanjing Road


3.5 IKEA Shanghai

China is host to eight of Ikea's 10 largest stores, which come with extra room displays given visitors' tendencies to spend all day at the store. Unusually, these stores encourage customers to sleep on the furniture, placing signs authorizing



them to do so. And after a hard day's shopping and eating meatballs, many seem to have taken up the offer

3.5.1 Learnings

At IKEA they recognize that their business has an impact on social and environmental issues, in particular people’s working conditions, as the environment, both locally and globally. They also strongly believe that they can do good business while being a good business. This is a pre-condition to their future growth, a growth that will be achieved along with suppliers that share the same vision and ambition.

Their guiding principles when working with these issues are: What is in the best interest of the child? What is in the best interest of the worker? What is in the best interest of the environment?

Through these principles they continue to follow their sustainability direction; “the IKEA business shall have an overall positive impact on people and the environment”.

3.7 Huangpu River Cruise

Huangpu River, a symbol of Shanghai, originates in Dianshan Lake and empties into the Yangtze River at Wusongkou. It is 114 kilometres long and 400 meters wide. It is ice-free year round. The river divides Shanghai into east and west. It is a silent eyewitness to Shanghai's history and its development.

A spectacular sight is that the two suspension bridges, Nanpu Bridge and Yangpu Bridge, appear to arch over the Oriental Pearl TV Tower, resembling 'Two dragons playing with a ball'. The west bank (Puxi) of the Huangpu River is the cultural, residential and entertainment center of Shanghai. The Bund, Monument to the People's Heroes, Waibaidu Bridge and the

oldest park in Shanghai - Huangpu Park, are located on the west bank. In addition, many historical buildings left over from Shanghai's colonial days have been preserved. The east bank of the river (Pudong) is the newer district of Shanghai and its financial and commercial hub. Steel and glass structures are abundant here. The Oriental Pearl TV Tower, Jin Mao Tower, skyscraper hotels, offices and malls of the Lujiazui Financial Zone are located on this side of the river.

When the sun sets, the river is veiled in the glittery neon lights on its banks. Cruising on the river in the evening, visitors can experience its silence and beauty under the moonlight.


3.8 Volkswagen Shanghai



Shanghai Volkswagen is an automobile manufacturing company headquartered in Anting, China and a joint venture between Volkswagen Group and SAIC Motor. It was founded in 1984 and produces cars under the Volkswagen and Škodamarques. The joint venture is made up of equity from (as of 2008) - Volkswagen AG (40%), Volkswagen (China) Invest (10%), SAIC (50%), with a fixed-term venture for 45 years. It will run until 2030.

Shanghai Volkswagen was formed in 1984, as a joint venture between Volkswagen and SAIC. This was a 25-year contract to make passenger cars in Shanghai with a limit of 50 per cent foreign ownership.

Shanghai Volkswagen's Shanghai plant was by the far the winner among all new JVs, as it produced cars that could function as taxis, vehicles for government officials and transport for the newly emerging business elite. Shanghai Volkswagen began automobile production in 1985. As car imports fell to some 34,000 in 1990, Shanghai Volkswagen's production of its Santana models reached nearly 19,000 vehicles that year. By 1993, Shanghai Volkswagen’s output had reached 100,000 vehicles. Volkswagen was aided by some Shanghai municipal efforts. Various restrictions on engine size, as well as incentives to city taxi companies, helped ensure a safe market in the company’s relatively wealthy home arena. Volkswagen also encouraged its foreign parts suppliers to create joint ventures in China, and their resulting product helped Shanghai Volkswagen achieve an 85 per cent local content rate by 1993.

Volkswagen Group China enjoys sales of about 2.81 million cars (2012) in the Chinese market and is the second-largest foreign carmaker after General Motors. The Chinese market

is one of the main markets of the Group. Operations of Volkswagen in China include the production, sales and services of whole cars, parts and components, engines and transmission systems, and the sales and service of imported cars. The company's locally manufactured and imported vehicles are sold under various brand names such as Volkswagen, Audi, SEAT, Škoda, Bentley, and Lamborghini in China. Volkswagen Group China is the largest, earliest, and the most successful international partner in China's Automotive Industry. It started its connection with China as early as in 1978, and has been taking the

leading position in the Chinese automotive market for more than 25 years. Its first joint venture in China, Shanghai Volkswagen Automotive Co., Ltd., was established in October 1984. The second joint venture, FAW-Volkswagen Automotive Company Ltd. was established in Changchun in February 1991.


Assembly line of Automobile Main Products of Volkswagen brand: Santana, Passat, Polo, Touram, Lavida, Tiguan Main Products of Skoda Brand: Octavia, Fabia, Rapid, Superb, Yeti


http://en.wikipedia.org/wiki/Changchun

http://en.wikipedia.org/wiki/FAW-Volkswagen

http://en.wikipedia.org/wiki/Shanghai_Volkswagen_Automotive

http://en.wikipedia.org/wiki/Joint_venture

http://en.wikipedia.org/wiki/Joint_venture

http://en.wikipedia.org/wiki/Automobile_industry_in_China



http://en.wikipedia.org/wiki/Lamborghini

http://en.wikipedia.org/wiki/Bentley

http://en.wikipedia.org/wiki/%C5%A0koda_Auto

http://en.wikipedia.org/wiki/SEAT

http://en.wikipedia.org/wiki/Audi

http://en.wikipedia.org/wiki/Volkswagen

http://en.wikipedia.org/wiki/General_Motors


First Car was Santana in 1983 They follow Lean Production Technology 15th November 2013, they exceeded 10 million mark Annual Capacity: 1,72,000 Units Total Employees: 30,900 Total Area: 96,10,000 m3

Registered Capital: RMB 11.5 Billion

3.12 Shanghai World Financial Centre

Standing in the center of Lujiazui Finance & Trade Zone in Pudong, Shanghai World Financial Center (SWFC) was completed in August 28, 2008, being the tallest skyscraper in China. Having 101 floors with a height of 492 meters (about 1,614 feet), it ranked the top in the heights of roof and usable floor by the time when it was built, announced by the Council on Tall Buildings and Urban Habitat (CTBUH).

Aiming to be a magnet of the world's finance, the building boasts functions of first class financial centers, able to showcase monetary talents, cultural and art exhibitions and information from all over the world. Modern office facilities, sightseeing floor at 474 meters (about 1,555 feet) above the ground, luxury hotel and multifunction meeting facilities are all available here, and over twenty multinational financial institutions will move into the ultra-modern building. More than forty enterprises from Japan and American invested together to construct this high-rises building. The sightseeing hall was opened to public on August 30. It ranked the tallest sightseeing hall in the world by the time it was built.

Like all skyscrapers in the world, security is a major issue of particular concern. The capability to withstand fire, wind, impacts, earthquakes and thunder is considered thoroughly at the very beginning of the design. SWFC can survive a massive 8 magnitude earthquake. There are fireproofed floors for escape; a dozen sets of obstacle indicator lights to warn low flying aircraft, as well as two wind dampers to reduce wind acceleration by 40%. In addition to lightning conductors covering the building, its glazed glass skin also protects against lightning and looks good too.

3.12.1 Observations

3 observation decks in Shanghai World Financial Center. The height of its lowest observation deck is 423m on the 94th floor,

the second is 439m high, on the 97th floor, named "Observatory Bridge”, and the highest is 474m high, on the 100th floor



Architects: Kohn Pedersen Fox & East China Architecture and Design Institute. Developer: Mori Building Corporation. Contractors: China State Construction Engineering Corporation & Shanghai

Construction General Company. Cost Management: Davis Langdon & Seah International.


3.13 Shanghai Indian Business Association

is a not-for-profit international network that is run by Indians in China, with the aim of strengthening success over generations. Shanghai Indian Business Association was developed in shanghai. Today with over 8,363 individual members from 2,869 family businesses across 58 countries, FBN is continually increasing its ability to help family businesses grow, succeed and prosper through the exchange of best practices, new ideas and the peer-to-peer learning activities within its network.

Shanghai Indian Business Association

Is a not for profit and non-solicitation organization Includes business personnel across shanghai Supports the Next Generation (aged 18-40) of business-owning families Shares best practice and knowledge within a worldwide network at global and local

levels Fosters intimate exchange and inspirational peer to peer learning Sponsors value added research Promotes the case for family business towards a more sustainable future

3.13.1 Learnings

Reasons of Business Mortalityo Sale of businesso Loss of Family Interesto Unpredictable Challengeso Industry Changeso Missed Opportunitieso Family conflicto Succession Problemso Mismanagement

Road Blocks to Businesso Family

No existing Family management system Balancing family and professional relationship Lack of family workforce Different family value

o Industry & Market World economy changes Increasing labour and raw material cost Diversification & Investment options

o Politics



Between the family members Between the members and non-members

Relationships are more valuable than money (Intangible Asset) Wealth can be divided but control of business cannot be divided

3.14 Coca-Cola Bottling Plant Shanghai

Established in 1886, The Coca-Cola Company operates in more than 200 countries and markets over 500 brands and more than 3,000 beverage products. These products include sparkling and still beverages, such as waters, juices and juice drinks, teas, coffees, sports

drinks and energy drinks. Company has four of the world’s top five non-alcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta.

Coca cola history in China dates back to 1927 when company first officially entered the Chinese market with the opening of two bottling plants, one in Shanghai and another in Tianjin – these two plants were among The Coca-Cola Company’s first international plants. And in 1979, just one day after China and the United States

established formal diplomatic relations; The Coca-Cola Company announced its return to the Chinese market. Shanghai plant is established on 28/3/1998 which is largest in Asia-Pacific region. Plant is established in 100,000 m2 area. It has 14 production lines.

Coca-Cola has established a total of 43 plants in China. The Coca-Cola system employs more than 50,000 people, virtually 99 per cent of who are local hires. Coca-Cola and its bottlers have always been active corporate citizens in China, promoting sustainable environmental projects and development of local communities through education and cooperative public-private endeavours with a total contribution of over RMB 200 million in China. Coca-Cola Co reported better-than-expected quarterly revenue as it ramped up spending on marketing and advertising, boosting sales in emerging markets such as China. The company plans to invest $8 billion in China over the five years through 2017 as it focuses on emerging markets to boost revenue.


Can Line : Volume of Can 330ml, Capacity1500 Cans/minute PET1 Line : Volume of PET bottle 300ml, Capacity 1500 bottles/minute PET2 Line : Volume of PET bottle 2L/2.5L, Capacity 200 bottles/minute PET3 Line : Volume of PET bottle 600ml/500ml, Capacity 700 bottles/minute PET4 Line : Volume of PET bottle 1.25L/1.5L, Capacity 500 bottles/minute Coca Cola’s Shanghai plant produce different product such as- Coca cola, Diet Coke,

Fanta, Sprite, Coca Cola Zero, etc. Coke Umbrella: 200 Countries, 500 Brands, 2500 Products Coca cola is each plant is a having individual selling areas. One bottling plant is not

allowed to sell their product outside their area. CSR Activities

o Protection of Water Resourceso Energy Saving and Emission Reductiono Women Support System


http://www.reuters.com/finance/markets?lc=int_mb_1001

http://www.reuters.com/sectors/industries/overview?industryCode=93&lc=int_mb_1001

http://www.reuters.com/sectors/industries/overview?industryCode=93&lc=int_mb_1001

http://www.coca-colacompany.com/stories/the-coca-cola-system


o Project Hope - Children Water System Final Syrup Drying SystemLabeling Auto Checking

Packaging Ware House


Day 7: October 12th, Yiwu China

Day 11: October 16th, Guangzhou China

3.24 Canton Fair

The Canton Fair is a trade fair held in the spring and autumn seasons each year since the spring of 1957 in Guangzhou, China. Its full name since 2007 has been China Import and Export Fair, renamed from Chinese Export Commodities Fair also known as Canton Fair. The Fair is co-hosted by the Ministry of Commerce of China and People's Government of the Guangdong Province, and organized by China Foreign Trade Centre. The Fair is the largest trade fair in China. Among China's largest trade fairs, it has the largest assortment of products, the largest attendance, and the largest number of business deals made at the fair. Like many trade fairs it has several traditions and functions as a comprehensive event of international importance.

Canton Fair is a platform for import and export mainly, with various and flexible patterns of trade. Beside traditional way of negotiating against samples, the Fair holds Canton Fair Online. Various types of business activities such as economic and technical cooperation and exchanges, commodity inspection, insurance, transportation, advertising, consultation, etc, are also carried out in flexible ways. Business people from all over the world are gathering in Guangzhou, exchanging business information and developing friendship.


Phase 1

Electronics & Household Electrical Appliances Lighting Equipment Vehicles & Spare Parts Machinery Hardware & Tools Energy Resources Chemical Products Building Materials

Phase 2

Consumer Goods Home Decorations Gifts

Phase 3 Office Supplies

Cases & Bags


http://www.cantonfair.org.cn/html/cantonfair/en/common/2012-09/8469.shtml#3


Recreation Products Food Medicines, Medical Devices and Health Products Textiles & Garments Shoes

Highlights of the Fair



Chapter 4: Introduction to Hongkong

4.1 Introduction

Hong Kong is one of two special administrative regions (sars) of the people's republic of china (prc), the other being macau. Situated on china's south coast and enclosed by the pearl river delta and south china sea, it is renowned for its expansive skyline and deep natural harbour. With a land mass of 1,104 km2 (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong’s population is 95 percent ethnic Chinese and 5 percent from other groups.

Hong Kong became a colony of the British Empire after the first opium war (1839–42). Originally confined to Hong Kong Island, the colony's boundaries were extended in stages to the Kowloon peninsula and the new territories by 1898. It was occupied by japan during the pacific war, after which the British resumed control until 1997, when china regained sovereignty. The region espoused minimum government intervention under the ethos of positive non-interventionism during the colonial era. The time period greatly influenced the current culture of Hong Kong, often described as "east meets west", and the educational system, which used to loosely follow the system in England until reforms implemented in 2009.

Under the principle of "one country, two systems", Hong Kong has different political system from mainland china. Hong Kong's independent judiciary functions under the common law framework. The basic law of Hong Kong, its constitutional document, which stipulates that Hong Kong shall have a "high degree of autonomy" in all matters except foreign relations and military defence, governs its political system. Although it has a burgeoning multi-party system, a small-circle electorate controls half of its legislature. An 800-person election committee selects the chief executive of Hong Kong, the head of government.

4.2 Economy

Hong Kong was once described by Milton Friedman as the world’s greatest experiment in laissez-faire capitalism. It maintains a highly developed capitalist economy, ranked the freest in the world by the index of economic freedom for 15 consecutive years. It is an important centre for international finance and trade, with one of the greatest concentrations of corporate headquarters in the Asia-pacific region, and is known as one of the four Asian tigers for its high growth rates and rapid development from the 1960s to the 1990s.

The Hong Kong stock exchange is the seventh largest in the world, with a market capitalisation of us$2.3 trillion as of December 2009. In that year, Hong Kong raised 22 percent of worldwide initial public offering (ipo) capital, making it the largest centre of ipos



in the world. Hong Kong’s currency is the Hong Kong dollar, which has been pegged to the US Dollar since 1983.

The Hong Kong government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.

Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the sars outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended. Government intervention, initiated by the later colonial governments and continued since 1997, has steadily increased, with the introduction of export credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.

4.3 Industry overview

Industry has experienced a slow decline over the last 2 decades. Its contribution to GDP was 15.2 percent in 1998, a significant decrease from its 1990 contribution of 17.7 percent. Its share of the workforce, which was 28 percent in 1990, dropped to about 15 percent in 1998. The decline of industry has been the outcome of a steady contraction in manufacturing, the result of the continued relocation of manufacturing establishments to mainland china. Manufacturing's share of GDP sharply fell from 24.3 percent in 1984 to 6.2 percent in 1998. The constant expansion of the service sector has also contributed to the process of decline. Other activities, such as construction, energy, and mining, are not significant enough to stop the steady decline of the industrial sector.

Certain factors have created "natural" barriers to the growth of the manufacturing sector and have forced a peculiar pattern of development on it. Scarcity of land, the absence of mineral resources, the high cost of labour, and the close proximity to china have ruled out the establishment of heavy industry or other land-and labour-intensive industries in Hong kong. Prior to the 1980s, Hong Kong produced mainly labour-intensive consumer products, including food, beverages, clothing, textiles, printed products, and fabricated metal products. Being a resource-and land-rich country with a very low-wage labour force, china became a "natural" place for Hong Kong’s manufacturing in the 1980s. Improved relations between the 2 sides made the relocation of major industries to china feasible. China's growing interest in foreign investment facilitated the process.

The existing Hong Kong industries are small-scale operations. They are involved mainly in certain manufacturing processes pertaining to re-exporting goods produced in china by Hong kong-owned establishments. These processes can involve the packaging of goods produced on the mainland, for instance. However, there are still export-oriented industries that produce textiles, electronics, plastics, and watches and clocks. The textile industry is the largest industrial employer and accounts for the bulk of annual domestic industrial exports, accounting for 45 percent (US $11.3 billion) and 49 percent (US $10.79 billion) of those exports in 1998 and 1999, respectively.



Day 13: October 18th, Hongkong

5.2 Ocean Park

Ocean Park Hong Kong, commonly known as Ocean Park, is a marine mammal park, oceanarium, animal theme park and amusement park, situated in Wong Chuk Hang and Nam Long Shan in the Southern District of Hong Kong. It is, together with Hong Kong Disneyland, one of the two large theme parks in Hong Kong. Opened in 1977 by the Governor of Hong Kong Sir Murray MacLehose, Ocean Park has grown to over 80 attractions and rides after the completion of a HK$5.5 billion Master Redevelopment Plan (MRP) begun in 2005. The park has won several awards, including The World's Seventh Most Popular Amusement Park and one of the "50 Most Visited Tourist Attractions in the world" by Forbes. In November 2012, Ocean Park became the first theme park in Asia to win the Applause Award from the International Association of Amusement Parks and Attractions.

Ocean Park received 7.45 million visitors in 2013, awarding it the position of the world's 12th most visited theme park, and the largest Theme Park in all of Asia followed behind by Hong Kong Disneyland. Covering an area of 91.5 hectares, the park is separated by a large mountain into two areas, The Summit (Headland) and The Waterfront (Lowland). These areas can be reached by a 1.5 kilometres cable car system, or the Ocean Express funicular railway. As the Headland comprises several hills, visitors can also opt to use Hong Kong's second longest outdoor escalator.

The theme park currently has a wide array of attractions and rides, including 4 roller coasters, and also animal exhibits with different themes, such as a giant panda habitat, a jelly fish and Chinese sturgeon aquarium, as well as a world-class aquarium featuring the world's largest aquarium dome which displays more than 5,000 fish. Besides being an amusement park,

Ocean Park Hong Kong is also committed to merging entertainment and education, while inspiring lifelong learning and conservation advocacy. This is done by operating observatories, laboratories, an education department, and the Ocean Park Conservation Foundation, Hong Kong (OPCFHK), a fund which advocates, facilitates and participates in the conservation of wildlife and habitats, with an emphasis on Asia, through research and education. In 2011/2012, the Foundation

funded 42 conservation projects, covering 27 species in 10 Asian countries for a total of HK$5 million—all record highs. Ocean Park Hong Kong was the first institution in the world to have success in artificial insemination of bottlenose dolphins, and developed numerous new breeds of goldfish.



Ocean Park has directed much effort into education and research about animal conservation. Ocean Park established the Ocean Park Conservation Foundation (OPCF) in 1993 and The Hong Kong Society for Panda Conservation (HKSPC) in 1999. In July 2005, the two merged to form the Ocean Park Conservation Foundation, Hong Kong, a registered charitable non-governmental organisation. With the ambition to advocate, facilitate and participate in the conservation of wildlife and habitats, OPCFHK has funded a total of HK$9 million to 90 local and overseas projects since 2005, including various research projects on dolphins, horseshoe crabs, porpoises, giant pandas, snakes and birds in various Asian countries.

Since 2006, OPCFHK has been collaborating with the Agriculture, Fisheries and Conservation Department to handle cetacean stranding cases within Hong Kong waters. After the 2008 earthquake in Sichuan, OPCFHK established a Giant Panda Base Rebuilding Fund and donated equipment to the affected nature reserves. In 2011/2012, the Foundation funded 42 conservation projects, covering 27 species in 10 Asian countries for a total of HK$5 million—all record highs. Ocean Park has also facilitated learning through education programmes throughout the years. The Park established the Ocean Park Academy (OPA) in 2004 to dedicate further efforts in education. Through OPA, the Park runs educational tours for school children and workshops for teachers from the Hong Kong Institute for Education. Every year, the Park offers over 35 core courses for around 46,000 students on six big topics: giant pandas and red pandas, dolphins and sea lions, birds, fishes, plants, and mechanical rides.

The Marine Mammal Breeding and Research Centre (MMBRC) set up by Ocean Park serves as a centre to house 9 dolphins and conduct research on the breeding of dolphins. MMBRC is divided into 6 separate activity zones, and provides behavioural training and basic husbandry to the dolphins. It also plays a part in research work on the echolocation capabilities of dolphins. From 29 March to 4 May 2013, MMBRC was open for public visits. To promote the idea of conservation to public, the official website of Ocean Park now features a "Conservation” session which introduces the importance of conservation and some current conservation issues related to daily life. It also offers funny facts about some wildlife species, as well as environmental threats and conservation.

Day 15: October 20th, Hongkong

5.4 Star Cruise



Superstar is a Leo class cruise ship owned and operated by Star Cruises. She was built in 1999 by the Meyer Werft shipyard in Papenburg, Germany. The 13-storey high SuperStar Virgo is equipped with 935 cabins, a full range of facilities, including restaurants and bars offering various cuisines and beverages, performing arts theatre, karaoke, swimming pool, water fun pool and Jacuzzi, beauty salon, kids’ climbing wall, gym and meeting rooms. The endless entertainment on-board guarantees a spectacular cruising experience for cruisers of all ages, as well as meeting participants and incentive groups.

5.4.1 Decks and Facilities

Medical center Outside and inside cabins Main dining room, Chinese restaurant (The Pavilion Room), outside and inside cabins Casino, cafeterias, karaoke bar, reception, Chinese and Italian restaurants, showroom

(lower level), promenade deck Meeting rooms, cinema, shops, Japanese and Indian restaurants, showroom (upper

level) Suites, outside and inside cabins Children's center, games arcade, sun deck, swimming pool, jacuzzi, suites, outside

and inside cabins Bridge, sundeck, outside and inside cabins Observation lounge/nightclub, card room, mahjong room, library, activity center,

beauty salon, saunas, gym, sundeck, swimming pool, buffet restaurant Discothèque, deck bar, sundeck

5.4.2 SuperStar Ship Fact



References

http://www.travelchinaguide.com/cityguides/shanghai/east-nanjing-road.htm http://wikitravel.org/en/Shanghai/Nanjing_Road http://www.usanfranonline.com/resources/supply-chain-management/walmart-keys-

to-successful-supply-chain-management/ http://www.sfu.ca/~sheppard/478/syn/1137/G_6_1137.pdf http://www.sunqiaoma.com/11english/index-en.asp?tag=11 http://en.shac.gov.cn/hjgl/nyyq/tzhj/200307/t20030715_75297.htm http://skyscraperpage.com/cities/?buildingID=7609 http://english.ecnu.edu.cn/s/191/t/339/p/10/c/4568/d/4574/list.htm http://en.wikipedia.org/wiki/Yiwu_market http://en.wikipedia.org/wiki/Ocean_Park_Hong_Kong http://aboutus.hktdc.com/en/#home http://louvre-group.cn/en/jianjie.asp?m1=11&m2=24 http://www.ctcte.com/spring/en/business_020-004.html http://www.chinahighlights.com/hangzhou/attraction/meijiawu-tea-plantation.htm http://rsbledsign.com/about/about-93.html http://shenzhenshopper.com/85-luohu-commercial-city.html http://www.chinahighlights.com/shenzhen/attraction/window-of-the-world.htm http://www.chinatravel.com/facts/china-industries.htm http://www.travelchinaguide.com/attraction/shanghai/nanjing_road.htm http://time.com/2962590/ikea-china-sleep/ http://www.wal-martchina.com/english/ http://en.wikipedia.org/wiki/Volkswagen_Group_China http://en.wikipedia.org/wiki/Lenovo http://www.coca-colacompany.com/press-center/press-releases/coca-cola-continues-

strong-investment-in-china-with-opening-of-43rd-production-facility http://www.tongji.edu.cn/english/index.php?classid=69 http://www.sunqiaoma.com/11english/news_detail-en.asp?id=230 http://chinaimport.hubpages.com/hub/Guide-to-importing-furniture-from-China http://www.yiwu-market.cn/Introduction.htm http://www.cantonfair.org.cn/en/about/index.shtml http://aboutus.hktdc.com/en/#home


http://aboutus.hktdc.com/en/#home

http://www.cantonfair.org.cn/en/about/index.shtml

http://www.yiwu-market.cn/Introduction.htm

http://chinaimport.hubpages.com/hub/Guide-to-importing-furniture-from-China

http://www.sunqiaoma.com/11english/news_detail-en.asp?id=230

http://www.tongji.edu.cn/english/index.php?classid=69

http://www.coca-colacompany.com/press-center/press-releases/coca-cola-continues-strong-investment-in-china-with-opening-of-43rd-production-facility

http://www.coca-colacompany.com/press-center/press-releases/coca-cola-continues-strong-investment-in-china-with-opening-of-43rd-production-facility

http://en.wikipedia.org/wiki/Lenovo

http://en.wikipedia.org/wiki/Volkswagen_Group_China

http://www.wal-martchina.com/english/

http://time.com/2962590/ikea-china-sleep/

http://www.travelchinaguide.com/attraction/shanghai/nanjing_road.htm

industrial orientation report -smeet jain

Documents

business plan60

business decisions

business culture

business networks

business opportunities

international exposure

family business network36

industry overview52